A new law applied to a competitive market that requires that laid off workers be paid a large severance payment will
A) not generate a deadweight loss.
B) increase total welfare.
C) increase consumer surplus in the market.
D) decrease consumer surplus in the market.
D
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Small time deposits of $100,000 or less are classified as
A) part of M1. B) FDIC insured. C) part of M2. D) highly liquid.
An indifference curve represents bundles of goods that a consumer
A) views as equally desirable. B) ranks from most preferred to least preferred. C) refers to any other bundle of goods. D) All of the above.
If the expenditure schedule must be shifted downward to reach potential GDP, then the economy is experiencing a(n)
A. inflationary gap. B. precautionary gap. C. restrictive gap. D. expansionary gap.
According to the monetarists, the primary cause of changes in real output and the price level is changes in ____________.
Fill in the blank(s) with the appropriate word(s).